Part of McClintock’s argument is that the TSXV and Canadian securities regulators should have probed defensive capital raisings at below-market prices last year because they benefited CEO Patrick McGrath and board members at the expense of other shareholders. Share offerings at C1¢ when the stock was C2¢, and twice at C6.5¢ apiece when the stock was around C9.5¢ and C8¢, followed a 10-to-one rollback, documents show.
“Between the three financings they did, they issued upwards of 65% new stock that was all done either to insiders or close associates,” McClintock said from Vancouver. “Two of those financings were announced as closed, which I’ve never really seen done in the industry before.”
Blue Moon’s McGrath said the company required capital raisings to stay afloat. Commenting by email, he said Michael’s father, Jack McClintock, was on the board at the time of the first financing, and that the McClintock Group…
